Wednesday 5 September 2018

Customer Service


I've just become aware that B and Q (can't use ampersands in Blogger) no longer give people with a Diamond Discard card (i.e. over 60s) a 10% discount on Wednesdays. Bastards! Allegedly one gets vouchers instead - or so the person at the checkout thinks.

Finally heard back from Gtech customer support about the hedge trimmer - you can indeed get spare parts, but what I need is part of a totally new head for the princely sum of £59.99, rather than simply the motor and spindle, which would be a fraction of the cost.

I can understand that - it makes them more money and saves on parts storage and processing. Doesn't specifically save the customer any money. Add up all the parts they do supply and you come out with a total cost of more than buying a new one -which again works in the favour of the manufacturer and is standard practice in manufacturing - making more from spares than a complete unit,


2 comments:

Roger said...

Just for your interest. I work for a company that manufacture heavy axles and suspension for trucks. Our OE margin is between 3% and 11% and our spare parts margin is at least 35%.

Chairman Bill said...

We made more than 50% margin on parts for obe company I worked for.

It does make commercial sense when the volume (if ftom 3rd parties) can produce sufficient revenue to make the assembled fully product cheaper than that of the competitors.